QUESTION:
Does just one employer identification number (EIN) apply to my self-directed solo 401k and business? I was reviewing my self-directed solo 40k trust paperwork and noticed that there are 2 (two) separate EINs–one for the solo 401k and a 2nd one for my self-employed business. I am not sure how another EIN came into the picture – but looking at my 5500 EZ forms the EIN for my self-employed business is being used on line 2b of the Form 5500-ez.
ANSWER:
Two different EINs apply–one for the self-employed business and another for the self-directed solo 401k, as they serve different functions.
When to use the EIN for the Self-Employed Business
Form 5500-EZ: The EIN for the self-employed business NOT the ein for the solo 401k is used on the Form 5500-ez.
Business Tax Returns: Use the EIN for the self-employed business on your business tax returns. Don’t use the EIN for the solo 401k.
When to use the EIN for the Self-Directed Solo 401k
Form 1099-R: The EIN for the solo 401k is also used when reporting solo 401k distributions as well as conversions and transfers.
Making Solo 401k Investments: The EIN for the solo 401k is used on alternative investment documents (e., real estate, private investments, tax liens, note, cryptocurrency, etc).
Solo 401k Bank or Brokerage Accounts: The EIN for the solo 401k is also used when opening the bank and/or brokerage accounts for the solo 401k.
